Yesterday,
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq held support above their respective 21-DMA. Distribution remains unchanged at five days on the S&P 500 and four on the Nasdaq. One distribution day expires on the Nasdaq Friday, and one day expires on each index next Tuesday.
Yesterday, major European markets closed in the green, but volume support was lacking. Investors are focusing on the European Central Bank’s monetary policy meeting on Thursday and the corporate results lined up for the week. Germany’s DAX and France’s CAC were up 0.24% and 0.26%, respectively, on lower volume. The U.K.’s FTSE 100 rose 0.08% on lower volume.
The U.S. market remains in a Confirmed Uptrend. The S&P 500 and Nasdaq continue to hold near all-time highs, consolidating the last two weeks of gains over the last several sessions. Distribution rose to five days on the S&P 500 (three in the last four sessions) and four on the Nasdaq, though one day is set to expire on the Nasdaq at the end of this week. There will also be further expiration on both indices next week. Near-term support remains the rising 21-DMA (S&P 500: 2,968; Nasdaq: 8,102).
We released our Europe weekly summary on Friday. (Please click here to access the full report). Key points: we moved the Stoxx 600 to an Uptrend Under Pressure last weekk after the index breached its 21-DMA on a clustering of distribution days the past two weeks. Total distribution days now stand at six. Given the pressure, don’t chase extended names, but look for stocks that are breaking out of early-stage consolidation. While most European markets remain in a Confirmed Uptrend (12 of 18 indices, including the Stoxx 600), the average number of distribution days increased again this week to 3.9 for the region (versus 3.10 last week and 1.10 two weeks ago). Last week, along with the Stoxx 600, we moved Sweden and Finland to an Uptrend Under Pressure. In terms of rotation among sectors, momentum in Health Care, Retail, and Financial has been improving over four weeks while still deteriorating in Capital Equipment (except for Aerospace & Defense), a trend we already highlighted the previsous week.
The U.S. market remains in a Confirmed Uptrend.The S&P 500 and Nasdaq staged upside reversals, finding support just above their respective 21-DMA. Distribution remains unchanged at four days on each index.
We released our weekly Global Laggards report yesterday (please click here to access the report). The stocks highlighted in this report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be vulnerable to further downside risk and underperformance. European names highlighted this week include: BIC (BIC.FR; BB FP)
The U.S. market remains in a Confirmed Uptrend. The S&P 500 closed below its 10-DMA and picked up back-to-back distribution days. The total distribution day count is now four on each index, with no expiration for approximately two weeks. The Nasdaq will likely open lower this morning and below its 10-DMA on the back of a poor reaction to NFLX results. To remain constructive and hold trend, we will now be looking for each index to find support at their respective 21-DMA (S&P 500: 2,964 (-0.7%); Nasdaq: 8,087 (-1.2%)). We would expect volatility to pick up should we break the 21-DMA, as the next level of support is ~3–4% lower at the 50-DMA.
Yesterday,
European markets closed lower, dragged down by trade concerns after President Trump tweeted that the U.S. and China still have a long way to go in terms of their trade dispute, suggesting he would be willing to place more tariffs on the latter.
The U.S. market remains in a Confirmed Uptrend.The S&P 500 and Nasdaq pulled back off all-time highs yesterday, adding their third and fourth distribution days, respectively. Both continue to hold trend, remaining above near-term support at the 10-DMA.
